The Rupee opened weak with high crude prices and a bearish turn in ?derivative market positioning supporting demand for the dollar. The Indian currency slipped past 96.50 in the previous session for the ?first time in two months and would likely have weakened further ?had it not been for intervention by the Reserve Bank ?of India, traders said. The rupee's outlook has deteriorated in recent weeks, ?coinciding with a rally in oil prices amid renewed tensions between the U.S. ?and Iran. Brent crude rose above $91 a barrel on Monday before pulling back to around $88.50. Despite the slight pullback in oil prices, the news flow remains a source of concern. ?Yemen's Iran-aligned Houthis said they would impose a naval blockade on ?Saudi Arabia, potentially opening a new front in the conflict with the U.S. and increasing ?risks ?to energy supplies. Market indicators point to the shift in sentiment toward the rupee. The spread between onshore and offshore rupee forward prices has widened, while options traders are paying more to hedge against further losses in the ?currency than to ?position for a ?rebound, suggesting investors are becoming increasingly bearish on the rupee. India's central bank said on Monday that measures ?announced last month to strengthen the country's balance of payments ?and ?boost capital inflows had attracted more than $20 billion. Most traders and analysts said the inflows exceeded their expectations. However, that is unlikely to ease near-term pressure on the ?rupee, ?a currency trader at a private bank said.bThe ?market has turned increasingly pessimistic on the rupee, and it would take a major trigger ?to alter that view, he said. The U.S. dollar hovered ?near a one-week high on Tuesday, with markets torn between conflicting Middle East signals, ?as hostilities in the region stoked renewed fears over energy supplies while hopes for a ceasefire offered some relief. Against the yen, the dollar was largely flat at 162.50 yen. The euro was also little changed at $1.1415, while ?the British pound held firm at $1.3434 af.ter Britain's new Prime Minister Andy Burnham vowed to ?stick to fiscal rules. The U.S. dollar index, which measures the currency against a basket ?of six peers, was steady at 100.96, near its highest level since July 15. Markets remained ?hostage to Middle East tensions, with oil prices experiencing sharp swings near six-week highs. Yemen's Iran-aligned Houthis declared a ?naval blockade on Saudi Arabia, raising the threat to global energy supplies, while hopes of de-escalation were still alive after Tehran received a 10-day ceasefire proposal from mediators. U.S. Treasury yields crept back up as traders weighed whether a renewed jump in oil prices, driven by the widening war with Iran, would eventually feed through to consumer prices. The benchmark 10-year Treasury yield remained elevated, trading at 4.5937%, while ?yields on 30-year Treasuries were ?also firmly above ?the 5% mark. Oil prices softened on Tuesday, with markets weighing ?reports of mediation efforts between the U.S. and Iran against an exchange of ?fresh attacks between the two and threats of a naval blockade of Saudi Arabia by Yemen's Houthis. Brent crude futures eased 35 cents, or 0.4%, to $88.87 per barrel by 0052 GMT, while U.S. West Texas ?Intermediate crude for September delivery was steady at $82.47 a barrel. Both contracts were ?trading below their highest levels in more than a month hit in ?the previous session.......